Stocks rose yesterday as cautious investors bet positive economic news and stable interest rates will provide a boost to second half profits.

The Dow Jones industrial average closed up 148.34, or 1.3 per cent at 11,176.14.

Broader stock indicators were also higher.

The Standard and Poor's 500 index was up 19.72, or 1.3 per cent, at 1,491.56, and the Nasdaq composite index was up 60.06, or 1.6 per cent, at 3,849.53.

Advancing issues outnumbered decliners by nearly a 2-to-1 margin on the New York Stock Exchange, where volume came to 781.64 million shares, down from Friday's pace.

The Russell 2000 index was up 4.21 at 514.48.